Bangalore: Realty firm, Modern Indian Property Developers has announced that it has kicked off dialogues with private equity (PE) firms to raise Rs.150 crore for part-funding the proposed IT/ITeS Special Export Zone (SEZ) at Khopoli in Maharashtra. The deal is likely to be sealed within the next six months.

VK Jatia, Chairman of Modern India said, "We are talking to private equity players, both in India and abroad, to raise Rs.150 crore for developing the IT/ITeS SEZ at Khopoli." He added that the company might have to dilute around 30 to 35 percent stake in the project for raising the fund.

The SEZ would be developed on 34 acres of land and Modern India has proposed to invest Rs.560 crore. Jatia said, "We are awaiting the notification from the Board of Approval. Apart from that, all other formalities including the acquisition of land are in place."

While the funding of the SEZ would be done at a debt-equity ratio of 2:1, at least three PSU banks have committed to extend Rs.100 crore each as loan for the development of the project. Remaining equity would be brought in by Modern India from internal accruals. The SEZ work is likely to start in six months and would take at least two to two and a half years to complete.